In defiance of U.S. sanctions, North Korean hackers have reportedly laundered $13 million worth of ether (ETH/USD) through a sanctioned cryptocurrency mixer, Tornado Cash.
The Lazarus Group, a North Korean cybercrime organization, used Tornado Cash to launder stolen cryptocurrency from a November 2023 exchange hack, reported Business Insider on Friday, citing data from blockchain analytics company Elliptic.
The blockchain analytics company revealed that the Lazarus Group funneled the stolen crypto through 40 transactions into Tornado Cash on March 13 and 14. The funds were part of the $100 million stolen from the HTX exchange and its HECO cross-chain bridge in November 2023.
Despite being blacklisted by the U.S. Department of the Treasury in August 2022, Tornado Cash continues to operate, as it functions on decentralized blockchains and smart contracts, making it inaccessible to authorities.
The Lazarus Group, known for orchestrating hacks totaling over $3 billion in the last six years, has been using Tornado Cash to obscure its funds since the U.S. seized another mixer, Sinbad, in November.
Reports about Kim Jong Un‘s North Korea increasingly leveraging cybercrime to fund its illicit activities, including its nuclear weapons program have been surfacing lately. In February, it was reported that North Korean hackers were using artificial intelligence to facilitate their cyber operations, targeting employees of global defense, cybersecurity, and cryptocurrency companies. This move was aimed at acquiring advanced technologies and funding for the country’s illicit nuclear weapons program.
The United Nations was also probing a series of cyberattacks allegedly orchestrated by North Korea, which generated a staggering $3 billion, with the funds purportedly used to develop the country’s nuclear weapons program further.
In January, blockchain analytics firm Chainalysis reported that last year North Korea-linked hackers stole more than $1 billion in assets by targeting a record number of cryptocurrency platforms.
It is evident that North Korea’s cybercrime activities are escalating, posing a significant threat to global cybersecurity and financial systems. The use of cryptocurrency mixers like Tornado Cash allows hackers to launder stolen funds effectively, making it challenging for authorities to track and recover the illicit proceeds. This highlights the importance of enhanced cybersecurity measures and international cooperation to combat such cyber threats effectively.
